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Some strategists are backing away from shares of Nike, which have fallen nearly 12 percent in the past month, securing Adidas Superstar Damen Schwarz its place as the worst-performing Dow component in that time."Shares have been weaker on a relative basis, and [are] faced by what we see are these top-down headwinds from this bearish apparel and retail industry," Ari Wald, head of technical analysis at Oppenheimer, said Tuesday on CNBC's "Trading Nation." "We see more attractive opportunities elsewhere."Still, there is some good news. The stock itself has become "tactically oversold at the lower end of its trading range," said Wald, which presents a bit of good news for the beaten-down athletic wear manufacturer. While at this point he wouldn't swoop in and buy the stock, he does not necessarily see further losses Nike Air Max 90 Dam Rosa at this juncture.Nike shares were trading modestly lower Wednesday, just below $53 per share.The broader weakness seen in the athletic retail space gives Mike Binger, Adidas ZX Flux Dames senior portfolio manager at Gradient Investments, pause about Nike, and he would not own the stock at current levels."When I look at the landscape of the athletic apparel industry, I see Dick's Sporting Goods, I see Under Armour, I see Foot Locker, I see Finish Line ... all of them [have] negative business trends; the stocks have been crushed, slashing estimates," Binger said on "Trading Nation."Nike's valuation, at 21 times expected forward earnings, also raises a flag, given its earnings are forecast to decline for fiscal 2018."It's one of those stocks that's certainly not going to attract a growth investor because earnings are declining; it's not going to attract Nike Air Max Command Mujer a value investor because it has a high multiple. It's stuck in purgatory, and it's hard to make money on a stock like that," he said.

In late August, shares in Nike Air Max 1 the company fell after Jefferies analyst Randal Konik wrote in a note to clients that the brand has begun losing some of its dominance in the athletic apparel space to competitor Adidas."With expectations for less robust fundamentals, Nike's premium valuation conflicts with intensifying US competition unfolding," Konik wrote.Johnson highlighted another issue on that call as well: Nike hasn’t introduced a breakthrough innovation in years. When he pointed to “the limited availability of innovative new products” for Foot Locker’s poor quarter, he laid most of the blame at Nike’s feet, since it accounts for the majority of what Foot Locker stocks. About 68% Foot Locker’s Nike Air Max 95 Dames inventory came from Nike in 2016.Adidas, on the other hand, is enjoying a strong positive response to its new Boost soles, a springy technology made of foam pellets Nike Air Presto Damen on exclusive license from chemical company BASF. They’re perfect for Adidas Stan Smith Mujer all those casual sneaker-wearers who want something comfortable, that also looks good.Adidas’s momentum, Morgan Stanley noted, may just come down to it having better products right now. But the brand’s still-growing popularity could help Adidas keep claiming Nike’s customers for some time to come. “We may be witnessing a sea change in consumer preferences which will take years to play out as sales trends ultimate [sic] come to match mindshare trends,” they write.

So what happens if Nike continues to slip? It’s not going to lose its crown anytime soon, but there’s no company better positioned Nike Air Max 90 Womens to take advantage than Adidas—and not just in the US.In Western Europe and China—two huge markets—the sales gap between Nike and Adidas is much smaller. China is the world’s second-biggest spender on sportswear, according to the research firm Nike Air Max 2017 Hombre Euromonitor, and still has a lot of room for sales to grow, which is why sportswear companies look to it as a massive reservoir of untapped income. Nike is currently the market leader in China, but Adidas is catching up fast enough that it could conceivably overtake Nike soon. Soccer-loving Western Europe, meanwhile, is Adidas’s home field, and the brand is historically strong there. Nike’s sales will likely keep growing. But it may see its profits squeezed, along with its share of the global pie.Nike didn’t get to the top of the sneaker world by coasting, though. It’s still a powerhouse of a company, dedicated to innovation and getting better at everything it does. It has some major projects in the works to speed up its supply chain so it can deliver customers what they want as soon as they want it. Fashion trends in the sneaker world, like the clothing world, also come and go much more quickly than they used to. The winds could easily shift back in Nike’s favor in the next couple years.
And there may be an upside to all this for consumers: It could open up the field to more genuine competition. Nike has been practically in a league of its own for years, but it’s facing a tough brawl against Adidas. The pressure is on for Nike to really listen to consumers about what they want—and deliver it.

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